Which of the following statements is correct?
A. Only financing and investing activities that directly affect cash are reported in a company's statement of cash flows.
B. Significant financing and investing activities that do not affect cash are not reported since they don't affect cash.
C. Significant financing and investing activities that do not affect cash are reported in either a separate schedule at the bottom of the statement of cash flows, or in a separate note or supplementary schedule to the financial statements. Significant noncash financing and investing activities are reported on the company's income statement.
Ans: B. Significant financing and investing activities that do not affect cash are not reported since they don't affect cash.
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What will be an ideal response?